Those following along with Thomson Medical Group Limited (SGX:A50) will no doubt be intrigued by the recent purchase of shares by insider Eng Lim, who spent a stonking S$2.3m on stock at an average price of S$0.088. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.1%.
The Last 12 Months Of Insider Transactions At Thomson Medical Group
In fact, the recent purchase by Eng Lim was the biggest purchase of Thomson Medical Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is S$0.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Thomson Medical Group share holders is that an insider was buying at near the current price. Eng Lim was the only individual insider to buy during the last year.
Eng Lim purchased 31.51m shares over the year. The average price per share was S$0.081. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Thomson Medical Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Thomson Medical Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Thomson Medical Group insiders own 89% of the company, worth about S$2.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Thomson Medical Group Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Thomson Medical Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Thomson Medical Group is showing 2 warning signs in our investment analysis, and 1 of those is significant...
Of course Thomson Medical Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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